Strategy The Challenges of Human Resources Management

Strategic Planning Strategic Planning Procedures for making decisions about the organization’s long-term goals and strategies Strategy formulation: the process of deciding on a strategic direction by defining an organization’s mission and goals and its SWOTs The process of devising structures and allocating resources to enact the strategy a company has choses Strategy implementation: plans are enacted and put into place

Why Strategic Planning Is Important To All Managers Human Resources Management 12e Gary Dessler Why Strategic Planning Is Important To All Managers The firm’s strategic plan guides much of what is done by all to accomplish organizational goals. Decisions made by managers depend on the goals set at each organizational level in support of higher level goals. The Importance of Strategic Planning You may not realize it when you’re managing, but your firm’s strategic plan is guiding much of what you do. Management expert Peter Drucker once said that management “. . . is the responsibility for execution.” Managers are judged by the extent to which you accomplish your unit’s goals. Those aims or goals—and the hard work you put into accomplishing them—all depend on your firm’s plans for the future. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Strategic Planning Process Strategic Human Resources Management (SHRM) The pattern of human resources deployments and activities that enable an organization to achieve its strategic goals Strategy formulation —providing input as to what is possible given the types and numbers of people available. Strategy implementation —making primary resource allocation decisions about structure, processes, and human resources.

Step One: Mission, Vision, and Values The basic purpose of the organization as well as its scope of operations Strategic Vision A statement about where the company is going and what it can become in the future; clarifies the long- term direction of the company and its strategic intent Core Values The strong and enduring beliefs and principles that the company uses as a foundation for its decisions

Merck & Co.’s Mission and Values

Starbucks’ Corporate Mission Statement

Strategic Planning Process Strategic Human Resources Management (SHRM) The pattern of human resources deployments and activities that enable an organization to achieve its strategic goals Strategy formulation —providing input as to what is possible given the types and numbers of people available. Strategy implementation —making primary resource allocation decisions about structure, processes, and human resources.

Human Resources Management 12e Gary Dessler Type of Strategy at Each Company Level In Figure 3-8 we see the three types of strategies that managers use, one for each level of the company. There is corporate-wide strategic planning, business unit (or competitive) strategic planning, and functional (or departmental) strategic planning. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Environmental Analysis Environmental Scanning The systematic monitoring of the major external forces influencing the organization. Economic factors: general, regional, and global conditions Industry and competitive trends: new processes, services, and innovations Technological changes: robotics and office automation Government and legislative issues: laws and administrative rulings Social concerns: child care and educational priorities Demographic and labor market trends: age, composition, literacy, and immigration

Human Resources Management 12e Gary Dessler Worksheet for Environmental Scanning The environmental scanning worksheet in Figure 3-6 is a simple guide for compiling relevant information about the company’s environment. This includes things like economic, competitive, and political trends that have an effect on the company and its strategy for competing in its market. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Human Resources Management 12e Gary Dessler SWOT Matrix, with Generic Examples The SWOT chart in Figure 3-7 is used in strategic planning by managers to compile an estimate of the company strengths, weaknesses, opportunities, and threats when creating the firm’s strategy. SWOT helps identify the factors that will allow a company to differentiate its product or service from those of its competitors to increase market share and gain a competitive advantage. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Personal SWOT Analysis SWOT Analysis for Individuals

Types of Corporate Strategies Human Resources Management 12e Gary Dessler Types of Corporate Strategies Concentration Vertical integration Diversification Corporate Strategy Possibilities Consolidation Geographic expansion With a concentration (single business) strategy, the firm offers one product or product line, usually in one market. Concentration growth strategies include market penetration, product development, and horizontal integration. A related diversification strategy implies that the firm will expand by adding new product lines and diversifying so that a firm’s lines of business still possess some kind of fit. A conglomerate (unrelated) diversification strategy means diversifying into products or markets not related to a firm’s current businesses or to one another. A vertical integration strategy means the firm expands by, perhaps, producing its own raw materials, or selling its products direct. A consolidation strategy focuses on reducing a firm’s size. Geographic expansion is taking the business abroad. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Strategic Planning Process Strategic Human Resources Management (SHRM) The pattern of human resources deployments and activities that enable an organization to achieve its strategic goals Strategy formulation —providing input as to what is possible given the types and numbers of people available. Strategy implementation —making primary resource allocation decisions about structure, processes, and human resources.

Strategic HR Choices

Linking Strategic Planning and HRP Strategic Analysis What human resources are needed and what are available? Strategic Formulation What is required and necessary in support of human resources? Strategic Implementation How will the human resources be allocated? Human Resources Planning Strategic Planning

Human Resources Management 12e Gary Dessler Comparison of Selected Human Resource Practices in High-Performance and Low- Performance Companies That a human resource manager can influence things like “number of qualified applicants per position” and “percentage of jobs filled from within” is apparent. After all, those are the sorts of activities that human resource managers oversee. Every department manager and supervisor can also play an important role in activities like these and thus build, within his or her own departmental domain, a higher performing organization. Table 3-1 provides a road map for doing so. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall